Date: 02/04/2009

Final
BILL SUMMARY for HB09-1127

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Moved to postpone House Bill 09-1127 indefinitely.
Refer House Bill 09-1127 to the Committee on Appro
PASS
FAIL
TIE



05:01 PM -- House Bill 09-1127 - Concerning Tax Incentives for Small Business

Representative Miklosi, prime sponsor, distributed a handout on the bill (Attachment G) and explained that House Bill 09-1127 provides an income tax credit for investments in small businesses based in Colorado. The credit is available for tax years 2011 through 2015. To qualify for the credit, an investor must invest in a business for at least three consecutive years. The investment in the third year must be at least $100,000 in cash or capital, such as equipment or buildings, that is provided in exchange for debt or equity in the business. The investment in the first two years must total at least $25,000. The business must have fewer than 20 employees at the time of initial investment. Representative Miklosi continued by saying the amount of the credit is equal to a percentage of the total amount of new wages paid to full-time Colorado-based employees hired by a business over the three-year investment period. The percentage is based on the number of full-time employees hired by the business over the same three-year period. The maximum percentage is 75 percent.

09HouseFin0204AttachG.pdf

The following persons testified:

05:04 PM -- Mr. Kevin Johansen, Angel Capital Summit Team, testified in support of the legislation and spoke to the effect of tax incentives in bringing jobs to Colorado. Mr. Johansen spoke to the factors that drive the entrepreneurial spirit and closed by talking about how difficult it is to raise money for new business-start up companies. This bill provides incentives to businesses to create jobs in Colorado.

05:24 PM -- Mr. Chris Reim, Breakout Equity Partners and American BioResources, testified in support of the bill. Mr. Reim, an investment banker, discussed the value of tax incentives toward the creation of jobs. He continued saying that Colorado needs to be competitive with other states. The incentives in this bill are an important step toward stimulating Colorado's economy because cash flow is critical to start-up businesses that create jobs.

05:30 PM -- Mr. Jim Holt, Adams Rental, testified in support of the bill and said that it will bring more businesses to Colorado.


05:31 PM

The bill was placed on the table for action and no amendments were offered.
BILL:HB09-1127
TIME: 05:31:43 PM
MOVED:Frangas
MOTION:Refer House Bill 09-1127 to the Committee on Appropriations. The motion failed on a 3-8 vote.
SECONDED:Kerr A.
VOTE
Apuan
No
Benefield
No
Gerou
No
Kefalas
Yes
Kerr A.
Yes
Lambert
No
Roberts
No
Summers
No
Swalm
No
Frangas
Yes
Judd
No
Not Final YES: 3 NO: 8 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:HB09-1127
TIME: 05:32:02 PM
MOVED:
MOTION:
SECONDED:
VOTE
Apuan
Benefield
Gerou
Kefalas
Kerr A.
Lambert
Roberts
Summers
Swalm
Frangas
Judd
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: TIE


BILL:HB09-1127
TIME: 05:37:14 PM
MOVED:Benefield
MOTION:Moved to postpone House Bill 09-1127 indefinitely. The motion passed on a 10-1 vote.
SECONDED:Summers
VOTE
Apuan
Yes
Benefield
Yes
Gerou
Yes
Kefalas
Yes
Kerr A.
Yes
Lambert
Yes
Roberts
Yes
Summers
Yes
Swalm
Yes
Frangas
No
Judd
Yes
Final YES: 10 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS